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ABN 33 089 107 657
Bellarine PeninsulaCommunity Branch Limited
Portarlington Community Bank®BranchDrysdale Community Bank®Branch
Annual Report2016
Annual Report Bellarine Peninsula Community Branch Limited 1
Chairperson’s report 2
Senior Manager’s report 4
Drysdale Manager’s report 6
Directors’ report 8
Auditor’s independence declaration 13
Financial statements 14
Notes to the financial statements 18
Directors’ declaration 35
Independent audit report 36
NSX report 38
Contents
Annual Report Bellarine Peninsula Community Branch Limited2
For year ending 30 June 2016
It is with great pride and much pleasure that I present the Chairperson’s report for the 17th
Bellarine Peninsula Community Branch Limited Annual Report.
Financial
At the end of the 2015/16 financial year, the company held deposits of $172 million and
lending of $92 million, a total of $264 million, and an increase of $17 million. Given the
difficult conditions in the financial market this is a pleasing result. We have also been able
to show profit after tax of just over $100,000 as can be seen from our financial report and
are pleased to recommend to shareholders a 5 cent dividend this year.
Bendigo and Adelaide Bank
We continue our good relationship with the Bendigo and Adelaide Bank and the staff at our regional office. We
welcomed our new Senior Manager Strategy and Performance, Melissa Pearce and our Senior Manager Community
Relationships, Kevin Hannam. Bendigo Bank has undertaken a significant internal structural change which now
sees the new role of Senior Manager Community Relationships which will provide more support and drive to us as a
Community Bank® branch. We were very lucky to have had Sue Tansy act as our Regional Manager for most of the year
and thank her for her support and encouragement.
Changes to financial model
A core principle of the Community Bank® model is a 50/50 share of margin earned on core banking products. To
better reflect this core principal, a new Revenue Share model was introduced from 1 July 2016.
Bendigo and Adelaide Bank Limited (“BEN”) has adopted a Funds Transfer Pricing (FTP) model for Community
Bank® Revenue Share, effective 1 July 2016. BEN applies its FTP methodology to regulatory reporting, performance
management and revenue share. The FTP model:
• is a method used to measure how much each account or product is contributing to overall profitability, given a
current cost of marginal funding.
• gives the BEN Group a better understanding of the net interest margin component of overall profitability.
• assigns a FTP rate based on the repricing characteristics and behavioural duration of products.
The BEN FTP revenue share sources Community Bank® branch product data and then applies BENs FTP rates to
calculate revenue share for each Community Bank® branch by core banking product i.e. loans and deposits. The BEN
FTP revenue share is reported to each Community Bank® company on a monthly basis.
The FTP methodology is reviewed annually with changes approved by BEN’s Asset & Liability Management Committee
(ALMAC). BEN’s Board Risk Committee approves changes to the FTP Policy.
Subject to the size of the impact of the changes to a Community Bank® company’s revenue share and a calculated
baseline revenue, transitional support arrangements have been made by BEN for those companies adversely affected
by these changes to the financial model, for a maximum period of up to three years. The purpose of this transitional
support is to provide the Community Bank® company with a revenue baseline while it grows and diversifies its
business to increase revenue.
Chairperson’s report
Annual Report Bellarine Peninsula Community Branch Limited 3
Community
Again, we are thrilled to have been able to make grants to our local community organisations and support local
community groups through sponsorship programmes. Over the years we have contributed over $1.4 million into the
local community.
This year we have partnered with the City of Greater Geelong to provide an L2P car to enable learner drivers to
undertake their required driving hours on the Bellarine. Given our location this is a much needed asset to our young
people and hopefully will assist many local teenagers in getting their driver’s licence.
With the ongoing support of our shareholders and our customers we will continue to support our local community.
Board
It has been my honour to take over the role of Chairperson earlier this year. Our past Chairman, Russell Enders,
resigned from the role and from the Board after 15 years of service to the company. Russell was instrumental in the
Steering Committee to establish the Drysdale Community Bank® Branch and capably and enthusiastically steered the
company in his time at the helm. On behalf of the Directors and staff of the company I express our extreme gratitude to
Russell for his tireless efforts and passionate involvement.
We also say goodbye to two other long standing Directors, Pam Evans and Janina Randone, both of whom have served
the company for many years, Pam since 2010 and Janina since 2008. We will miss their valuable input and ideas, but
look forward to their continued support of the company into the future.
We also welcome two new Directors to our Board, Robert Barker and Sheryl Follett. Both Robert and Sheryl are local
community members who bring a wealth of experience and passion to the Board.
Staff
Across our two branches we are proud to employ 14 people. Our staff are our major asset and we thank them all for
their ongoing commitment to our values. This year we also said goodbye to our Senior Manager Mark O’Dowd. Although
Mark had only been with us for a short time he was a valuable member of our staff and the driving force behind a
number of initiatives, most notably our L2P car. Mark is still within the Bendigo and Adelaide Bank family, taking up the
role of Senior Manager Community Relationships in the Ballarat region.
Shareholders
We must always remember that our very first supporters were, and continue to be, our shareholders. Without the initial
support of our shareholders now 17 years ago we would not have a Community Bank® branch in Portarlington or later
in Drysdale. Our efforts within the community are as a direct result of the trust shown in the company and the Board by
our shareholders.
Justine Finlay
Chairperson
Chairperson’s report (continued)
Annual Report Bellarine Peninsula Community Branch Limited4
For year ending 30 June 2016
Banking is our business, community is our purpose.
As a result of the strong year we have had in our banking business, the Bellarine Peninsula
Community Branch Limited has been able to deliver over $120,000 of benefit, through
sponsorships, donations and grants, to more than 80 community organisations across the
Northern Bellarine. The Portarlington and Drysdale Community Bank® branches have worked
tirelessly to provide banking products and services for our customers whilst considering the
bigger picture. We should think about what we can do beyond banking to help our customers
and strengthen the communities they live in.
Beyond banking, we helped strengthen the communities our customers live in through our
contributions to:
• Portarlington Mussel Festival
• National Celtic Folk Festival
• Clubs that Care program in conjunction with the Portarlington Demons Football & Netball club
• Drysdale Hawks Football & Netball club
• Festival of Glass
• Easter Art Show
• Family Fun Day at the Potato Shed
• Drysdale Cricket Club
• A boxed lunch for those who attended the Spirit of Christmas at Parks Hall.
One of our highlights during the year was our commitment, on behalf of our customers and shareholders, to the
community based L2P (Learner 2 Probation) driving program via the donation of a new Holden Barina. This investment
in the young people of the Northern Bellarine aims to build their confidence and capability on the way to achieving
the 120 hours of driving experience required prior to obtaining their driver’s licence. We collaborated with the City of
Greater Geelong, TAC, CGU Insurance, Portarlington Golf Club and Winter & Taylor Holden to make this possible.
In April this year we were extremely proud to be recognised by the broader community for our extensive support of the
regions youth when the Portarlington & Drysdale Community Bank® branches were announced as the winners of the
‘Corporate Award’ at the ‘Geelong Youth Awards’. We were nominated for our youth achievements by the City of Greater
Geelong. The Corporate category recognises businesses that highlight youth development as a core component of their
business. Involving young people in business is important to ensure their sense of belonging and engagement in the
community. In addition to the L2P driving program our support of youth has extended to:
• Drysdale & Portarlington Toy Libraries
• Bellarine Secondary College’s Youthfest
• Junior Tennis Tournament at the Drysdale Tennis Club
• Kids Matter program at the Drysdale Primary School
• Springdale Neighbourhood Centre’s Child Care program
• Purchase of books for the Clifton Springs Primary School
• A rescue vessel for the junior sailing program at St Leonards Yacht Club & Motor Squadron
Senior Manager’s report
Annual Report Bellarine Peninsula Community Branch Limited 5
• Fresh Fruit Friday at the Drysdale Primary School
• Health & Wellbeing program at the Portarlington Primary School
• Kidsfest at the St Leonards Primary School
• St Leonards Junior Cricket Club
• Bellarine Peninsula Little Athletics to purchase new equipment for their budding Olympians.
We are continually conscious of the changes to the external environment, whilst our business needs to adapt and
be flexible to meet the ongoing challenges around Growth, Margin and Market pressure. We need to strengthen
our internal and external partnerships to realise our potential in achieving greater, sustainable outcomes for the
community. It’s about “BEing bigger and better for our customers, partners, communities and our most important
resource to get the job done…our people”.
Sincere thanks to the staff at both of our branches for their continued commitment to the service of our community,
customers and shareholders. Thanks also to our Board who volunteer their time and effort to provide greater outcomes
for our community.
Our partner, Bendigo Bank, is the fifth largest bank in Australia. Banking is an everyday function for every single person
in the community. The difference with the Community Bank® model is that every time people bank with their local
Community Bank® branch the bottom line increases and as such, community contributions increase as well. Together
we are building a stronger community.
Mark O’Dowd
Senior Manager
Senior Manager’s report (continued)
Annual Report Bellarine Peninsula Community Branch Limited6
For year ending 30 June 2016
I am pleased to report that as at the 30 June 2016 the Drysdale Community Bank® Branch
holdings were more than $134 million with 2,934 customers and 5,196 accounts.
Our business growth target for this financial year was $10 million, and although we’ve had
a continued positive approach we fell short and achieved growth of $7.208 million. Taking
into account the current economic climate, three major banks in the town, low interest rates
being paid to depositors, new borrowings at a low and existing borrowers paying down debt
at an accelerated rate, this was a good result.
The amount of business held on our books as at 30 June 2016 (good mix of business) is as
follows:
Deposits $ 73.314 million
Lending $ 61.000 million
Total $134.314 million
My thanks go to our customers as without their banking business the branch would not generate the profits that
continue to be put back into the local community to support our clubs, not for profit organisations and the many events
in the area.
The community focus of the branch and the positive benefit it brings to the local community are evident. Some of the
major events that we continue to sponsor are:
• Festival of Glass
• Easter Art Show
• Fresh Fruit Friday – Drysdale Primary School
• Youth – Art Mentorship
Spreading the word still remains a key phrase. Our existing customers have been instrumental in referring new
business to our branch, and it is gratifying to see the confidence of our customers in helping make our branch
successful.
I would personally like to commend the Drysdale Community Bank® Branch staff; Wendy, Tonia, Heather, Yvonne,
Bea, Liz and Steve for their work and results over the past 12 months. I thank them for their continued work ethic,
professionalism and commitment to the service of our customers and the community. I would like to welcome Cameron
Place (Customer Relationship Manager) who came to us from Portarlington Community Bank® Branch, Tegan Paul
(Customer Service Officer) who came from Leopold Community Bank® Branch and also I wish Liz all the best in her
new position at our Portarlington Community Bank® Branch.
To our shareholders, I thank you for your support. Without you this could not happen. Your confidence in this business
model and the difference we are making in the local community is what the Community Bank® model is all about.
Please consider if you are not currently banking with either the Portarlington or Drysdale Community Bank® branches,
please visit either branch, or speak to either Shae, myself or one of our personable staff about all your financial
service/banking needs.
I would also like to thank the Board for the time, effort and support that they have given all of us over the past
12 months. Your commitment and encouragement is something that the branches are very lucky to have!
Drysdale Manager’s report
Annual Report Bellarine Peninsula Community Branch Limited 7
Once again I ask that you all continue to play your part in the growth of our branch by spreading the word about the
very personal and professional banking service provided by your Community Bank® branch. As our business grows, so
will our community support.
Together we are building a stronger community.
The Drysdale Community Bank® Branch is Bigger than a bank.
Craig Taylor
Branch Manager
Drysdale Manager’s report (continued)
Annual Report Bellarine Peninsula Community Branch Limited8
Directors’ reportFor the financial year ended 30 June 2016
Your Directors submit the financial report of the company for the financial year ended 30 June 2016.
Directors
The following persons held office as Directors at any time during or since the end of the financial year:
Russell Enders Paul Jones
Stephen Wight Geoffrey Webster
Sandra Baldwin Janina Randone
Pam Evans Kerry Trewin
Justine Finlay
Company Secretary
The Company Secretary is Sandra Baldwin.
Principle activities and significant changes in nature of activities
The principle activities of the company during the course of the financial year were facilitating the Community Bank®
services under management rights to operate two franchised branches of Bendigo and Adelaide Bank Limited.
There were no significant changes in the nature of principal activities during the financial year.
Operating result and review of operations
The net result of the company for the year after providing for income tax was a profit of $103,903.
There was no significant change in operations during the period with the asset base of both branches continuing to
grow and thereby improving profitability.
Financial position
The company’s net assets have increased to $1,086,104 at the end of the financial year compared to $1,046,143 for
the previous year. The company’s current asset ratio is 4.76, indicating a sound financial position.
Significant changes in state of affairs
There were no significant changes in the company’s State of Affairs during the year.
Dividends
Dividends paid or declared for payment during the financial year are as follows:
• Ordinary dividend of $0.04 cents per share paid on 1 December 2015.
Matters subsequent to the end of the financial year
At the date of this report no matter or circumstance has arisen since the end of the financial year that has significantly
affected or may significantly affect the operations of the company; the results of those operations; or the State of
Affairs of the company in future years.
Annual Report Bellarine Peninsula Community Branch Limited 9
Directors’ report (continued)
Future development
The Directors are not aware of any specific development likely to have a significant effect on the operations of the
company or the expected results of those operations.
Environmental regulations
The company’s operations are not regulated by any significant environmental regulation under a law of the
Commonwealth or of a State or Territory.
Director and Auditor indemnification
The company has indemnified all Directors and Auditors in respect of liabilities to other persons (other than the
company or related body corporate) that may arise from their position as Directors of the company except where the
liability arises out of conduct involving lack of good faith.
Disclosure of the nature of the liability and the amount of the premium is prohibited by the confidentiality clause of the
contract of insurance.
Share options
No options to shares in the company have been granted during the financial year and there were no options
outstanding at the date of this report.
Proceedings
No person had applied for leave of Court to bring proceedings on behalf of the company or intervene in any
proceedings to which the company is a party for the purpose of taking responsibility on behalf of the company for all or
any part of those proceedings.
The company was not a party to any such proceedings during the year.
Remuneration report
The Board is responsible for the determination of remuneration packages and policies applicable to the Manager of
each branch and all the staff. The Managers are invited to the Board meeting as required to discuss performance and
remuneration packages.
The Managers are paid a base salary, which is between $70,000 and $95,000 plus superannuation. In addition each
Manager receives a bonus if the company exceeds the performance criteria established by the Board.
No Directors’ remuneration has been paid as the positions are held on a voluntary basis.
Sandra Baldwin received payment for services performed in a role as ‘Executive Officer’ including, but not limited to,
community and public relations, corporate affairs administration, accounts liaison and other Company Secretarial
duties. During the 2016 financial year Sandra was paid $9,925.
The Bellarine Peninsula Community Branch Limited has accepted the Community Bank® Directors’ Privileges package.
The package is available to all Directors who can elect to avail themselves of the benefits based on their personal
banking with the Bellarine Peninsula Community Branch Limited. There is no requirement to own BEN shares and
there is no qualification period to qualify to utilise the benefits. The package mirrors the benefits currently available to
Bendigo and Adelaide Bank shareholders.
Annual Report Bellarine Peninsula Community Branch Limited10
Directors’ report (continued)
Information on Directors
The Director responsible in office at the date of this report together with their qualifications, experience, special
responsibilities and shareholdings are:
Stephen J. Wight
Chartered Accountant
Registered Company Auditor
Involvement in public and not for profit organisations
Geelong resident
Shares Held: Nil
Sandra Baldwin
Company Secretary
Member of the Steering Committee of the Drysdale Community Bank® Branch
Previous Business Owner in local area
Clifton Springs resident
Shares Held: 500
Paul Jones
Trade Teacher
Involved in community organisations
Member of the Steering committee of the Drysdale Community Bank® Branch for the Bellarine Peninsula
Community
Branch Limited
Drysdale resident
Shares Held: 2,500
Geoffrey Webster
Salesman
Member of the Steering committee of the Drysdale Community Bank® Branch for the Bellarine Peninsula
Community
Branch Limited
Drysdale resident
Shares Held: 1,000
Annual Report Bellarine Peninsula Community Branch Limited 11
Directors’ report (continued)
Information on Directors (continued)
Janina Randone
Self funded retiree and farmer
Involved in community organisations.
Member of the Steering committee of the Drysdale Community Bank® Branch for the Bellarine Peninsula
Community Branch Limited
Drysdale resident
Shares Held: 2,000
Pam Evans
Portarlington Resident
Retired District Leader and
Involved with Portarlington Girl Guides for over 50 years
Shares Held – Nil
Kerry Trewin
Practice Manager
Member of Portarlington Business Association
Involved in community organisations
Portarlington Resident
Shares Held – Nil
Justine Finlay
Solicitor and notary public
Board member of Vicwest Community Enterprise Ltd
Involved in local not for profit and sporting organisations
Ocean Grove Resident
Meeting attendance July 2015 to June 2016
2015 - 2016
Director 27 J
uly
2015
24 A
ugus
t 2015
28 S
epte
mbe
r 2015
26 O
ctob
er 2
015
23 N
ovem
ber
2015
1 F
ebru
ary
2015
22 F
ebru
ary
2015
21 M
arch
2015
2 M
ay 2
015
30 M
ay 2
015
27 J
une
2015
Russell Enders A P P L L A A A R R R
Paul Jones P P A P P P P P A P L
Stephen Wight A P P A P P P P P A P
Sandra Baldwin P P P P P P P P A P P
Geoff Webster A P P P P P A P P P P
Pam Evans P P P P P P P A P P P
Janina Randone P P P P P P A P A L L
Kerry Trewin P P P P P P P P P P P
Justine Finlay P P A P P P P A P P P
Key to Symbols: P – Present, A – Apology, L – Leave, R – Retired
Annual Report Bellarine Peninsula Community Branch Limited12
Directors’ report (continued)
Auditor’s Independence Declaration
A copy of the Auditor’s independence declaration as required under section 307C of the Corporations Act 2001 is
attached.
Signed in accordance with a resolution of the Board of Directors
Stephen Wight
Director
Annual Report Bellarine Peninsula Community Branch Limited 13
Auditor’s independence declaration
Annual Report Bellarine Peninsula Community Branch Limited14
Financial statementsStatement of Profit or Loss and Other Comprehensive Income for the year ended 30 June 2016
Notes 2016 2015 $ $
Revenue from ordinary activities
Revenue 2 1,624,015 1,540,017
Expenses from ordinary activities
Employee benefits 906,837 888,247
Information technology expenses 75,562 78,062
Depreciation and amortisation 3 51,490 49,056
Property expenses 122,632 109,431
Donations and sponsorship 95,686 83,399
Professional fees 44,340 42,260
Insurance 23,328 22,642
Administration expenses 132,388 176,989
Other expenses from ordinary activities 39,803 30,075
Total expenses from ordinary activities 1,492,066 1,480,161
Net result before income tax 131,949 59,856
Income tax expense 4 28,046 11,813
Net result after income tax 103,903 48,043
Comprehensive result for the year 103,903 48,043
Earnings per share (cents per share)
Basic earnings per share 24 0.065 0.030
Diluted earnings per share 24 0.065 0.030
The accompanying notes form part of these financial statements.
Annual Report Bellarine Peninsula Community Branch Limited 15
Financial statements (continued)
Statement of Financial Position as at 30 June 2016
Notes 2016 2015 $ $
Assets
Current assets
Cash and cash equivalents 5 572,129 474,639
Receivables 6 119,381 92,805
Total current assets 691,510 567,444
Non-current assets
Other financial assets 7 19,200 19,200
Deferred tax assets 8 25,263 35,651
Property, plant, equipment 9 339,501 343,658
Intangible assets 10 175,598 202,934
Total non-current assets 559,562 601,443
Total assets 1,251,072 1,168,887
Liabilities
Current liabilities
Payables 11 49,369 75,959
Borrowings 12 4,497 -
Short-term provisions 13 80,983 69,696
Current tax liabilities 14 10,384 (32,189)
Total current liabilities 145,233 113,466
Non-current liabilities
Borrowings 12 10,869 -
Long-term provisions 13 8,866 9,278
Total non-current liabilities 19,735 9,278
Total liabilities 164,968 122,744
Net assets 1,086,104 1,046,143
Equity
Issued capital 15 787,911 787,911
Financial assets reserve (20,800) (20,800)
Retained earnings 318,993 279,032
Total equity 1,086,104 1,046,143
The accompanying notes form part of these financial statements.
Annual Report Bellarine Peninsula Community Branch Limited16
Financial statements (continued)
Statement of Changes in Equity for the year ended 30 June 2016
Note Financial Issued assets Retained capital reserve earnings Total $ $ $ $
Balance at 1 July 2014 787,911 (20,800) 342,889 1,110,000
Comprehensive income
Net result for the year - - 48,043 48,043
Other comprehensive income for the year - - - -
Transactions with owners in their
capacity as owners
Dividends recognised for the year 25 - - (111,900) (111,900)
Balance at 30 June 2015 787,911 (20,800) 279,032 1,046,143
Comprehensive income
Net result for the year - - 103,903 103,903
Other comprehensive income for the year - - - -
Transactions with owners in their
capacity as owners
Dividends recognised for the year 25 - - (63,943) (63,943)
Balance at 30 June 2016 787,911 (20,800) 318,993 1,086,104
The accompanying notes form part of these financial statements.
Annual Report Bellarine Peninsula Community Branch Limited 17
Financial statements (continued)
Cash Flow Statement for the year ended 30 June 2016
Notes 2016 2015 $ $
Cash flows from operating activities
Receipts
Receipts from customers 1,586,228 1,552,684
Interest 11,211 10,665
Payments
Employee benefits (921,085) (917,563)
Income tax paid 24,915 (28,244)
Other (535,206) (541,386)
Net cash inflows from operating activities 16 166,063 76,156
Cash flows from investing activities
Purchase of plant & equipment (19,997) (2,318)
Proceeds from sale of plant & equipment - -
Purchase of intangible assets (0) -
Net cash inflows/(outflows) from investing activities (19,997) (2,318)
Cash flows from financing activities
Proceeds from borrowings 15,366 -
Dividends paid 25 (63,943) (111,900)
Net cash inflows/(outflows) from financing activities (48,576) (111,900)
Net increase/(decrease) in cash held 97,489 (38,062)
Cash at 1 july 474,639 512,701
Cash at 30 june 5 572,128 474,639
The accompanying notes form part of these financial statements.
Annual Report Bellarine Peninsula Community Branch Limited18
Notes to the financial statementsFor year ended 30 June 2016
Note 1. Statement of significant accounting policies
Basis of preparation
Bellarine Peninsula Community Branch Limited (‘the company’) is domiciled in Australia. The financial statements for
the year ending 30 June 2016 are presented in Australian dollars. The company was incorporated in Australia and the
principal operations involve providing Community Bank® services.
The financial statements have been prepared on an accruals basis and are based on historical costs, modified, where
applicable, by the measurement at fair value of selected non-current assets, financial assets and financial liabilities
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within
the fair value hierarchy; described as follows, based on the lowest level of input that is significant to the fair value
measurement as a whole, in accordance with AASB 13 Fair Value Measurement applicable from 1 January 2013:
Level 1 - quoted market prices in active markets for identical assets or liabilities
Level 2 - valuation techniques for which the lowest level input that is significant to the fair value measurement is
either directly or indirectly observable
Level 3 - valuation techniques for which the lowest level input that is significant to the fair value measurement is
unobservable.
No material adjustments to the carrying amounts of any of the company’s assets or liabilities were required as a
consequence of applying AASB 13. However, AASB 13 required enhanced disclosures for both assets and liabilities
measured at fair value which are disclosed in the notes to the financial statements.
The financial statements require judgements, estimates and assumptions to be made that affect the application of
accounting policies. Actual results may differ from these estimates.
The financial statements were authorised for issue by the Directors on the 5th September, 2016
Statement of compliance
The financial report is a general purpose financial report, which has been prepared in accordance with Australian
Accounting Standards (including Australian Interpretations) adopted by the Australian Accounting Standards Board
and the Corporations Act 2001. The financial report of the company complies with International Financial Reporting
Standards and interpretations adopted by the International Accounting Standards Board. Australian Accounting
Standards that have been recently issued or amended, but are not yet effective, have not been adopted in the
preparation of this financial report. The impact, if any, of the changes to these standards are still being assessed by
the company.
Significant accounting policies
The following is a summary of the material accounting policies adopted by the company in the preparation of the
financial report. The accounting policies have been consistently applied, unless otherwise stated.
(a) Rounding
All amounts shown in the Financial Statements are expressed to the nearest dollar.
Annual Report Bellarine Peninsula Community Branch Limited 19
Notes to the financial statements (continued)
Note 1. Statement of significant accounting policies (continued)
Significant accounting policies (continued)
(b) Cash and cash equivalents
For the purposes of the cash flow statement, cash and cash equivalents include cash on hand, deposits held at call
with financial institutions, other short-term, highly liquid investments with original maturities of three months or less
that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in
value.
(c) Receivables
Trade debtors are carried at nominal amounts due and are due for settlement within 30 days from the date of
recognition. Collectability of debts is reviewed on an ongoing basis. The Directors believe that the full amount of
debt is recoverable, and no doubtful debt provision have been made at 30 June 2016.
Receivables are recognised initially at fair value and subsequently measured at amortised cost, using the effective
interest rate method, less any accumulated impairment.
(d) Other financial assets
Other financial assets are recognised and derecognised on trade date where purchase or sale of an investment is
under a contract whose terms require delivery of the investment within the timeframe established by the market
concerned, and are initially measured at fair value, net of transaction costs.
The company classifies its other financial assets between current and non-current assets based on the purpose for
which the assets were acquired at initial recognition.
The company assesses at each balance sheet date whether a financial asset or group of financial assets is
impaired.
Financial assets at fair value through profit or loss
Financial assets held for trading purposes are classified as current assets and are stated at fair value, with any
resultant gain or loss recognised in profit or loss. The net gain or loss recognised in profit or loss incorporates any
dividend or interest earned on the financial asset. Fair value is determined in the manner described in Note 17(f).
Loans and receivables
Trade receivables, loans and other receivables are recorded at amortised cost, using the effective interest method,
less impairment.
The effective interest method is a method of calculating the amortised cost of a financial asset and of allocating
interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated
future cash receipts through the expected life of the financial asset, or, where appropriate, a shorter period.
Held-to-maturity investments
Where the company has the positive intent and ability to hold investments to maturity, they are stated at amortised
cost less impairment losses.
Available-for-sale financial assets
Other financial assets held by the company are classified as being available-for-sale and are stated at fair value.
Gains and losses arising from changes in fair value are recognised directly in equity until the investment is
disposed of or is determined to be impaired, at which time the cumulative gain or loss previously recognised in
equity is included in profit or loss for the period. Fair value is determined in the manner described in Note 17(f).
Annual Report Bellarine Peninsula Community Branch Limited20
Notes to the financial statements (continued)
Note 1. Statement of significant accounting policies (continued)
Significant accounting policies (continued)
(e) Plant and equipment
Plant and equipment are brought to account at cost or at independent or Directors’ valuation less, where
applicable, any accumulated depreciation or amortisation.
The carrying amount of plant and equipment is reviewed annually by Directors to ensure it is not in excess of the
recoverable amount from these assets.
The recoverable amount is assessed on the basis of the expected net cash flows which will be received from the
assets’ employment and subsequent disposal.
The expected net cash flows have not been discounted to their present values in determining recoverable amounts.
The depreciable amount of all fixed assets is depreciated over their useful lives commencing from the time the
asset is held ready for use. A summary of the depreciation method and depreciation rates for each class of
attached is as follows.
Class of asset 2016 2015
Furniture & fittings 10-25% 10-25%
Plant & equipment 10-25% 10-25%
Leasehold improvements 10-25% 10-25%
Motor vehicles 23% 23%
(f) Impairment of assets
Intangible assets with indefinite useful lives (and intangible assets not yet available for use) are tested annually for
impairment (i.e. as to whether their carrying value exceeds their recoverable amount, and so require write-downs)
and whenever there is an indication that the asset may be impaired. All other assets are assessed annually for
indications of impairment, except for:
• financial instrument assets;
• investment property that is measured at fair value; and
• non-current assets held for sale.
If there is an indication of impairment, the assets concerned are tested as to whether their carrying value exceeds
their recoverable amount. Where an asset’s carrying value exceeds its recoverable amount, the difference is written-
off by a charge to the operating statement except to the extent that the write-down can be debited to an asset
revaluation reserve amount applicable to that class of asset.
It is deemed that, in the event of the loss of an asset, the future economic benefits arising from the use of the
asset will be replaced unless a specific decision to the contrary has been made. The recoverable amount for most
assets is measured at the higher of depreciated replacement cost and fair value less costs to sell. Recoverable
amount for assets held primarily to generate net cash inflows is measured at the higher of the present value of
future cash flows expected to be obtained from the asset and fair value less costs to sell.
(g) Goodwill
Goodwill is initially recorded at the amount by which the purchase price for a business combination exceeds the fair
value attributed to the interest in the net fair value of identifiable assets, liabilities and contingent liabilities at date
of acquisition. Goodwill is tested annually for impairment and carried at cost less accumulated impairment losses.
Annual Report Bellarine Peninsula Community Branch Limited 21
Notes to the financial statements (continued)
Note 1. Statement of significant accounting policies (continued)
Significant accounting policies (continued)
(h) Payables
These amounts consist predominantly of liabilities for goods and services. Payables are initially recognised at fair
value, then subsequently carried at amortised cost and represent liabilities for goods and services provided to the
company prior to the end of the financial year that are unpaid, and arise when the company becomes obliged to
make future payments in respect of the purchase of these goods and services. The normal credit terms are usually
Nett 30 days.
(i) Provisions
Provisions are recognised when the economic entity has a legal, equitable or constructive obligation to make a
future sacrifice of economic benefits to other entities as a result of past transactions or other past events, it is
probable that a future sacrifice of economic benefits will be required and a reliable estimate can be made of the
amount of the obligation.
A provision for dividends is not recognised as a liability unless the dividends are declared, determined or publicly
recommended on or before the reporting date.
(j) Share capital
Issued and paid up capital is recognised at the fair value of the consideration received by the company. Any
transaction costs arising on the issue of ordinary shares are recognised directly in equity as a reduction of the
share proceeds received.
(k) goods and services tax
Revenues, expenses and assets are recognised net of GST except for receivables and payables which are stated
with the amount of GST included and except where the amount of GST incurred is not recoverable, in which case
GST is recognised as part of the cost of acquisition of an asset or part of an item of expense or revenue. GST
receivable from and payable to the Australian Taxation Office (ATO) is included in the statement of financial position.
The GST component of a receipt or payment is recognised on a gross basis in the cash flow statement except for
the GST component of investing and financing activities, which are disclosed as operating cash flows.
(l) Income tax
The income tax expense for the year comprises current income tax expense and deferred tax expense.
Current income tax expense charged to the profit or loss is the tax payable on taxable income calculated using
applicable income tax rates enacted, or substantially enacted, as at reporting date. Current tax liabilities are
therefore measured at the amounts expected to be paid to the relevant taxation authority.
Deferred income tax expense reflects movements in deferred tax asset and deferred tax liability balances during
the year as well unused tax losses.
Current and deferred income tax expense is charged or credited directly to equity instead of the profit or loss when
the tax relates to items that are credited or charged directly to equity.
Deferred tax assets and liabilities are ascertained based on temporary differences arising between the tax bases
of assets and liabilities and their carrying amounts in the financial statements. Deferred tax assets also result
where amounts have been fully expensed but future tax deductions are available. No deferred income tax will be
recognised from the initial recognition of an asset or liability, excluding a business combination, where there is no
effect on accounting or taxable profit or loss.
Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the period when the
asset is realised or the liability is settled, based on tax rates enacted or substantively enacted at reporting date.
Their measurement also reflects the manner in which management expects to recover or settle the carrying amount
of the related asset or liability.
Annual Report Bellarine Peninsula Community Branch Limited22
Notes to the financial statements (continued)
Note 1. Statement of significant accounting policies (continued)
Significant accounting policies (continued)
(l) Income tax (continued)
Deferred tax assets relating to temporary differences and unused tax losses are recognised only to the extent that
it is probable that future taxable profit will be available against which the benefits of the deferred tax asset can be
utilised.
(m) Leases
Leases of fixed assets where substantially all the risks and benefits incidental to the ownership of the asset, but
not the legal ownership, are classified as finance leases. Finance leases are capitalised, recording as asset value
of the minimum lease payments, including any guaranteed residual values. Leased assets are amortised over their
estimated useful lives where it is likely that the entity will obtain ownership of the asset or over the term of the
lease. Lease payments are allocated between the reduction of the lease liability and the interest expense for the
period.
Lease payments for operating leases, where substantially all the risks and benefits remain with the lessor, are
charged as expenses in the periods in which they are incurred. Lease incentives under operating leases are
recognised as a liability. Lease payments received reduce the liability.
(n) Employee benefits
Provision is made for the company’s liability for employee benefits arising from services rendered by employees
to balance date. Employee benefits that are expected to be settled within one year have been measured at the
amounts expected to be paid when the liability is settled. Employee benefits payable later than one year have
been measured at the present value of the estimated future cash outflows to be made for those benefits. Those
cashflows are discounted using market yields on national government bonds with terms to maturity that match the
expected timing of cashflows.
(o) Revenue recognition
Revenue is recognised in accordance with AASB 118. Income is recognised as revenue to the extent it is earned.
Unearned income at reporting date is reported as income received in advance.
(p) Comparative Information
Where necessary the previous year’s figures have been reclassified to facilitate comparisons.
2016 2015 $ $
Note 2. RevenueRevenue from continuing operations
Services revenue 1,611,165 1,526,813
Interest - other persons 11,012 11,964
Recoveries 1,838 1,240
Total revenue from continuing operations 1,624,015 1,540,017
Annual Report Bellarine Peninsula Community Branch Limited 23
Notes to the financial statements (continued)
2016 2015 $ $
Note 3. Depreciation and amortisation Depreciation of property plant and equipment 24,154 21,646
Amortisation of intangibles 27,336 27,410
51,490 49,056
Note 4. Income tax expense a) The components of tax expense comprise:
Current tax 22,030 7,700
Deferred tax 6,016 4,113
28,046 11,813
b) The prima facie tax on profit from ordinary activities before income
tax is reconciled to income tax as follows:
Prima facie tax payable on profit from ordinary activities before income
tax at 30% (2015: 30%) 39,473 18,041
Add
Tax effect of:
other non-allowable items (11,427) (6,228)
28,046 11,813
Less
Tax effect of:
under provision of tax in prior years - -
28,046 11,813
Weighted average tax effective rate 21.26% 19.74%
Note 5. Cash and cash equivalents Cash at bank 79,396 115,694
Short term deposits 492,733 358,945
572,129 474,639
Annual Report Bellarine Peninsula Community Branch Limited24
Notes to the financial statements (continued)
2016 2015 $ $
Note 6. Receivables Current
Contractual
Trade debtors 550 -
Franchise income receivable 116,243 90,018
Accrued investment income 2,588 2,787
Total 119,381 92,805
(a) Ageing of receivables
Please refer to note 16 (c) for the ageing analysis of receivables.
(b) Nature and extent of risk arising from receivables
Please refer to note 16 (c) for the nature and extent of credit risk arising
from receivables.
Note 7. Other financial assetsNon-current
Available-for-sale financial assets
Shares - unlisted public company 19,200 19,200
(a) Ageing of other financial assets
Please refer to note 17 (c) for the ageing analysis of Other Financial Assets.
(b) Nature and extent of risk arising from other financial assets
Please refer to note 17 (c) for the nature and extent of credit risk arising from
Other Financial Assets.
Note 8. Deferred tax assetsDeferred tax assets comprise:
Provisions 26,955 23,692
Other (1,692) 11,959
25,263 35,651
Annual Report Bellarine Peninsula Community Branch Limited 25
Notes to the financial statements (continued)
2016 2015 $ $
Note 9. Property, plant and equipment(a) Gross carrying amount and accumulated depreciation
At cost
Furniture and equipment 44,682 41,515
Less accumulated depreciation (38,165) (35,701)
Total furniture and equipment 6,517 5,814
Motor vehicles 17,330 -
Less accumulated depreciation (2,121) -
Total motor vehicles 15,209 -
Leashold improvements 440,984 441,484
Less accumulated amortisation (123,208) (103,640)
Total leasehold improvements 317,776 337,844
Total property, plant and equipment 339,501 343,658
(b) Reconciliations of the carrying amounts of each class of asset
LeaseholdImprovements
$
Motor Vehicles
$
Furniture &Equipment
$
Total$
Balance at 1 July 2014 356,820 - 6,167 362,987
Additions - - 2,318 2,318
Disposals at WDV - - - -
Depreciation expense (18,976) - (2,671) (21,647)
Balance at 30 June 2015 337,844 - 5,814 343,658
Additions 0 - 3,167 3,167
Disposals at WDV (refer Note 2(a)) (500) - - (500)
Depreciation expense (19,568) (2,121) (2,464) (24,153)
Balance at 30 June 2016 317,776 15,209 6,517 339,501
(c) Fair value measurement hierarchy of assets as at 30/6/2016
Carrying
amount as at
30 June 2016
Fair value measurement at end of reporting
period using:
Level 1(i) Level 2(i) Level 3(i)
Furniture and equipment at fair value 6,517 - 6,517 -
Motor Vehicles at fair value 15,209 - 15,209 -
Leasehold improvements at fair value 317,776 - 317,776 -
339,501 - 339,501 -
Annual Report Bellarine Peninsula Community Branch Limited26
Notes to the financial statements (continued)
Note 9. Property, plant and equipment (continued)
Note
(i) Classified in accordance with the fair value hierarchy, see Note 1
Furniture and fittings and leasehold improvements are held at carrying value (depreciated cost). When furniture
and fittings and leasehold improvements are specialised in use, such that it is rarely sold other than as part of a
going concern, the depreciated replacement cost is used to estimate the value. Unless there is market evidence
that current replacement costs are significantly different from the original cost, it is considered unlikely that the
depreciated replacement cost will be materially different from the existing carrying value.
Bellarine Peninsula Community Branch acquires new vehicles and at times disposes of them before completion of
their economic life. The process of acquisition, use and disposal in the market is managed by Bellarine Peninsula
Community Branch who set relevant depreciation rates during use to reflect the consumption of the vehicles. As a
result, the fair value of vehicles does not differ materially from the carrying value (depreciated cost).
There were no changes in valuation techniques thoughout the period to 30 June 2016.
2016 2015 $ $
Note 10. Intangible assetsNon-current
Franchise licence fee 137,426 137,426
Less accumulated amortisation (68,306) (40,970)
69,120 96,456
Goodwill - Drysdale branch at cost 106,478 106,478
175,598 202,934
Note 11. PayablesCurrent
Contractual
Payables - contractual 1,859 1,696
Accrued wages - 32,576
Accrued expenses 7,041 6,700
8,900 40,972
Statutory
GST payable 22,909 15,934
PAYG witholding 12,442 10,107
Payroll tax 5,118 8,946
40,469 34,987
Total payables 49,369 75,959
Annual Report Bellarine Peninsula Community Branch Limited 27
Notes to the financial statements (continued)
2016 2015 $ $
Note 12. BorrowingsCurrent $ $
Equipment finance lease 5,068 -
Less unexpired interest charges (571) -
Total 4,497 -
Non-current
Equipment finance lease 12,249 -
Less unexpired interest charges (1,379) -
Total 10,869 -
Total borrowings 15,366 -
Note 13. Provisions Current $ $
Long service leave 47,524 39,160
Annual leave 33,459 30,536
Total 80,983 69,696
Non-current
Long service leave 8,866 9,278
Total provisions 89,849 78,974
Note 14. Tax liabilities Current
Income tax 10,384 (32,189)
Note 15. Issued capital (a) Ordinary shares
1,598,571 (2015: 1,598,571) ordinary shares fully paid 787,911 787,911
Annual Report Bellarine Peninsula Community Branch Limited28
Notes to the financial statements (continued)
2016 2015 $ $
Note 16. Reconciliation of net result for the year to net cash flows from operating activities Result after income tax 103,903 48,043
Non-cash flows in profit
Depreciation and amortisation 51,490 49,057
Changes in assets and liabilities
Increase/(decrease) in provisions 63,835 (64,605)
Increase/(decrease) in payables (26,590) 20,329
Decrease/(increase) in receivables (26,576) 23,332
Net cash from operating activities 166,063 76,156
Note 17. Financial risk management
(a) Financial risk management objectives and policies
The company has exposure to credit risk, liquidity risk and market risk from their use of financial instruments.
This note presents information about the company’s exposure to each of the above risks, their objectives, policies and
processes for measuring and managing risk, and the management of capital.
The Board of Directors has overall responsibility for the establishment and oversight of the risk management
framework. The Board has established an Audit and Governance committee which reports regularly to the Board.
The company’s principal financial instruments comprise of:
• Cash Assets
• Term Deposits
• Receivables (excluding statutory receivables)
• Payables (excluding statutory payables)
Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of
measurement and the basis on which income and expenses are recognised, with respect to each class of financial
asset, financial liability and equity instrument are disclosed in Note 1 to the financial statements.
Annual Report Bellarine Peninsula Community Branch Limited 29
Notes to the financial statements (continued)
Note 17. Financial risk management (continued)
(b) Categorisation of financial instruments
Note Category
Carrying Amount
2016$
2015$
Financial assets
Cash and cash
equivalents5 N/A 572,129 474,639
Receivables 6 Loans and Receivables 119,381 92,805
Other financial assets 7Available for sale of Financial Assets (at fair
value) 19,200 19,200
Financial liabilities
Payables 11Financial Liabilities measured at Amortised
Cost 8,900 51,079
(c) Credit risk
The maximum exposure to credit risk, excluding the value of any collateral or other security, at balance date to
recognised financial assets, is the carrying amount, net of any provisions for impairment of those assets, as disclosed
in the balance sheet and notes to the financial statements.
The company’s exposure to credit risk is limited to Australia by geographic area. The entire balance of receivables is
due from Bendigo and Adelaide Bank Limited.
The company limits its exposure to credit risk by only investing in liquid securities with Bendigo and Adelaide Bank
Limited.
The company’s exposure to credit risk and effective weighted average interest rate by ageing periods is set out in
the following table. For interest rates applicable to each class of asset refer to individual notes to the financial
statements.
Interest rate exposure and ageing analysis of financial assets as at 30 June
2016
WeightedAverage Interest
Rates%
Consolidated Carrying Amount
$
Interest Rate Exposure NotPast DueAnd NotImpaired
$
FixedInterest
Rate$
VariableInterest
Rate$
Non Interest Bearing
$
Financial assets
Cash and cash equivalents 3.25 572,129 492,733 79,036 360 572,129
Receivables 0.00 119,381 - - 119,381 119,381
Other financial assets 0.00 19,200 - - 19,200 19,200
Total financial assets 710,710 492,733 79,036 138,941 710,710
2015
Financial assets
Cash and cash equivalents 3.25 474,639 358,945 115,334 360 474,639
Receivables 0.00 92,805 - - 92,805 92,805
Other financial assets 0.00 19,200 - - 19,200 19,200
Total financial assets 586,644 358,945 115,334 112,365 586,644
Annual Report Bellarine Peninsula Community Branch Limited30
Notes to the financial statements (continued)
Note 17. Financial risk management (continued)
(d) Liquidity risk
The company manages liquidity risk by monitoring forecast cash flows and ensuring that liquid assets are available.
The following table discloses the contractual maturity analysis for the company’s financial liabilities.
2016
WeightedAverage Interest
Rates%
Consolidated
Carrying Amount
$
Interest Rate ExposureMaturity Dates1-2
Years
2-5Years
FixedInterest
Rate$
Non Interest Bearing
$
Less than1 Month
$
Trade creditors and
accruals0.00 8,900 - 8,900 8,900 - -
Borrowings 3.60 15,366 15,366 - 4500 10,866
Total financial
liabilities 24,267 15,366 8,900 8,900 4,500 10,866
2015
Trade creditors and
accruals0.00 51,079 - 51,079 51,079 - -
Total financial
liabilities 51,079 - 51,079 51,079 - -
(e) Market risk
Currency risk
The company has no exposure to foreign currency risk.
Interest rate risk
Exposure to interest rate risk might arise primarily through the company’s interest bearing liabilities. The company
currently has no interest bearing liabilities.
Other price risk
The company is exposed to insignificant other price risk
Taking into account past performance, future expectations, economic forecasts, and management’s knowledge and
experience of the financial markets, the company believes the following movements are ‘reasonably possible’ over the
next 12 months (Base rates are sourced from the Reserve Bank of Australia)
• A parallel shift of +1% and -1% in market interest rates (AUD) from year-end rates of 4%;
• A parallel shift of +1% and -1% in inflation rate from year-end rates of 3%
Annual Report Bellarine Peninsula Community Branch Limited 31
Notes to the financial statements (continued)
Note 17. Financial risk management (continued)
(e) Market risk (continued)
Other price risk (continued)
The following table discloses the impact on net operating result and equity for each category of financial instrument
held by the company at year end if changes in the relevant risk occur:
2016
CarryingAmount
$
Interest Rate Risk
-1%Profit
$
Equity$
+1%Profit
$
Equity$
Financial assets
Cash and cash equivalents 572,129 (790) (790) 790 790
Receivables 119,381 - - - -
Other financial assets 19,200 - - - -
Financial liabilities
Trade creditors and
accruals 8,900 - - - -
Borrowings 15,366 - - - -
2015
Financial assets
Cash and cash equivalents 474,639 (1,153) (1,153) 1,153 1,153
Receivables 92,805 - - - -
Other financial assets 19,200 - - - -
Financial liabilities
Trade creditors and
accruals 51,079 - - - -
(f) Fair values
The fair values and net fair values of financial instrument assets and liabilities are determined as follows:
Level 1 - the fair value of financial instrument with standard terms and conditions and traded in active liquid markets
are determined with reference to quoted market prices;
Level 2 - the fair value is determined using inputs other than quoted prices that are observable for the financial asset
or liability, either directly or indirectly; and
Level 3 - the fair value is determined in accordance with generally accepted pricing models based on discounted cash
flow analysis using unobservable market inputs.
The net fair values of financial assets and liabilities approximate the carrying values as disclosed in the Statement of
financial position. The company does not have any unrecognised financial instruments at year end.
Annual Report Bellarine Peninsula Community Branch Limited32
Notes to the financial statements (continued)
Note 17. Financial risk management (continued)
(g) Capital management
The Board’s policy is to maintain a strong capital base so as to sustain future development of the company. The Board
of Directors monitor the return on capital and the level of dividends to shareholders. Capital is represented by total
equity as recorded in the Statement of financial position.
In accordance with the franchise agreement, in any 12 month period, the funds distributed to shareholders shall not
exceed the Distribution Limit.
The Distribution Limit is the greater of:
(a) 20% of the profit or funds of the Franchisee otherwise available for distribution to shareholders in that 12 month
period; and
(b) subject to the availability of distributable profits, the Relevant Rate of Return multiplied by the average level of
share capital of the Franchisee over that 12 month period.
The Relevant Rate of Return is equal to the weighted average interest rate on 90 day bank bills over that 12 month
period plus 5%.
The Board is managing the growth of the business in line with this requirement. There were no changes in the
company’s approach to capital management during the year.
Note 18. Capital and leasing commitmentsThere are no known capital or leasing commitments for Bellarine Peninsula Community Branch Ltd.
Note 19. Segment reporting
Industry segments
Bellarine Peninsula Community Branch Ltd’s only industry segment is the provision of branch banking services.
Geographical segment
Bellarine Peninsula Community Branch Ltd operates predominantly on the Bellarine Penisula, Victoria. More than 90%
revenue, net surplus from ordinary activities and segment assets relate to operations on the peninsula.
Note 20. Director and related party disclosures
a) The names of Directors whom have held office during the financial year are:
R Enders SJ Baldwin
S Wight PC Jones
P Evans GD Webster
K Trewin J Randone
J Finlay
Annual Report Bellarine Peninsula Community Branch Limited 33
Notes to the financial statements (continued)
Note 20. Director and related party disclosures (continued)
b) Income paid or payable to all Directors - -
c) Transactions with Directors and/or related parties
S. Wight is a Director of Davidsons Pty Ltd which provides accounting services to the company. The amount paid to
Davidsons Pty Ltd for these services amounted to $37,600 (2015 $36,500).
The transactions were made on an arms length basis and on normal terms and conditions.
The Bendigo Peninsula Community Branch Ltd has accepted the Community Bank® Directors Privileges package.
The package is available to all Directors who can elect to avail themselves of the benefits based on their personal
banking with the Bendigo Peninsula Community Branch Ltd. There is no requirement to own BEN shares and there is no
qualification period to qualify to utilize the benefits. The package mirrors the benefits currently available to Bendigo and
Adelaide Bank shareholders.
Note 21. Contingent assets and contingent liabilitiesThe are no known contingent assets or contingent liabilities for the company
Note 22. Events occurring after reporting dateSince 30 June 2016 no matter or circumstance has arisen which had significantly affected or which may significantly
affect the operations of the organisation or of a related entity
2016 2015 $ $
Note 23. Auditors remunerationRemuneration of the Auditor of the company for:
-Auditing or reviewing the financial report 6,740 5,760
6,740 5,760
Note 24. Earnings/ (loss) per shareBasic earnings per share amounts are calculated by dividing profit / (loss) after income tax by the weighted average
number of ordinary shares outstanding during the year.
Diluted earnings per share amounts are calculated by dividing profit / (loss) after income tax by the weighted average
number of ordinary shares outstanding during the year (adjusted for the effects of any dilutive options or preference
shares).
2016 2015 $ $
Annual Report Bellarine Peninsula Community Branch Limited34
Notes to the financial statements (continued)
Note 24. Earnings/ (loss) per share (continued)
The following reflects the income and share data used in the basic and
diluted earnings per share computations:
Profit/(loss) after income tax expense 103,903 48,043
Weighted average number of ordinary shares for basic and
diluted earnings per share 1,598,571 1,598,571
a) Basic earnings per share (cents per share) 0.065 0.03
b) Diluted earnings per share (cents per share) 0.065 0.03
Note 25. Dividends(a) Dividends paid during the year
Previous year proposed Franked dividends - 4 cents per share
(2015: 7 cents per share) 63,943 111,900
(b) Dividends proposed and not recognised as a liability
No dividends have currently been proposed (2015: 0 cents per share) - -
(c) Franking credit balance
The amount of franking credits available for the subsequent financial year are:
Franking account balance as at the end of the financial year 126,219 114,595
Subsequent to year-end, the franking account would be reduced by the
proposed dividend reflected per (b) as follows: - -
The tax rate at which dividends have been franked is 30% (2015: 30%).
Dividends proposed will be franked at a rate of 30% (2015: 30%).
Note 26. Corporate informationBellarine Peninsula Community Branch Limited is a company limited by shares incorporated in Australia whose shares
are publicly traded on the National Stock Exchange of Australia (NSX).
The registered office is: 44 Newcombe Street
Portarlington 3223
The principal places of business are: Portarlington 44 Newcombe Street
Portarlington 3223
Drysdale 11 Clifton Springs Road
Drysdale 3222
2016 2015 $ $
Annual Report Bellarine Peninsula Community Branch Limited 35
Directors’ declarationThe Directors of the company declare that:
1. The financial statements of the company comprising the Income Statement, Balance Sheet, Statement of Changes
in Equity, Cash Flow Statement and notes to and forming part of the accounts
(a) give a true and fair view of the company’s financial position as at 30 June 2016 and its performance and cash
flows for the year ended on that date; and
(b) comply with the Corporations Act 2001, Accounting Standards and the Corporations Regulations 2001.
2. In the Directors’ opinion there are reasonable grounds to believe that the company will be able to pay its debts as
and when they become due and payable.
This declaration is made in accordance with a resolution of the Board of Directors and is signed on behalf of the
Directors by:
Dated this 5 September 2016
Stephen Wight
Director
Annual Report Bellarine Peninsula Community Branch Limited36
Independent audit report
Annual Report Bellarine Peninsula Community Branch Limited 37
Independent audit report (continued)
Annual Report Bellarine Peninsula Community Branch Limited38
1. Distribution of equity securities
The number of shareholders by size of holding are
Number of equity securitiesThe number of shareholders by
size of holding
1-1,000 102
1,001 – 5,000 186
5,001 – 10,000 39
10,001 – 100,000 28
100,001 and over 1
2. Thirteen largest shareholdings
The names of the thirteen largest shareholders of quoted shares are:
Shareholder Name Number of Shares Percentage of holding
Lynette Maree Elliott 130,000 8.13%
Alice Patricia Stroud 70,000 4.38%
Richard Everritt Thorne 46,100 2.88%
Audrey Laureen Drever 40,000 2.5%
John Barry Carew 32,003 2%
Annie Carew 32,000 2%
Margaret Nicol Macleod 30,000 1.88%
Peter Wolfenden 30,000 1.88%
DEJ Investments Pty. Ltd. 30,000 1.88%
Impact Insurance Superannuation Fund Pty. Ltd. 30,000 1.88%
David Lewis Investments Pty. Ltd. 30,000 1.88%
David Lewis Investments Pty. Ltd. (Lewis Family Super Fund) 30,000 1.88%
Thomas Leigh Pty. Ltd. (The Waring Family Superannuation Fund) 30,000 1.88%
There are 7 shareholders holding less than a marketable parcel of shares ($500 in value)
NSX report
bendigobank.com.au
Portarlington Community Bank® Branch44 Newcombe Street, Portarlington VIC 3223Phone: (03) 5259 3266 Fax: (03) 5259 3277www.bendigobank.com.au/portarlington
Drysdale Community Bank® Branch1/13 Hancock Street, Drysdale VIC 3222Phone: (03) 5253 3192 Fax: (03) 5251 2383www.bendigobank.com.au/drysdale
Franchisee: Bellarine Peninsula Community Branch Limited44 Newcombe Street, Portarlington VIC 3223Phone: (03) 5259 3266 Fax: (03) 5259 3277ABN: 33 089 107 657 (BNPAR16061) (08/16)
This Annual Report has been printed on 100% Recycled Paper